Sincap Group Limited received a letter from certain shareholders that had previously acquired a significant stake in the Company. Through this letter, they stated their intention to convene an Extraordinary General Meeting (EGM) for the removal of Sincap’s Directors.
Cresco Investments advised the management, current board and controlling shareholders in handling the entire situation. The management, current board and controlling shareholders of the Company successfully beat off the challenge of this group of shareholders.
Amongst the methods employed, Cresco Investments brought in a new investor which subsequently acquired enough shares to establish a substantial stake in the Company. This new investor helped to strengthen the support to the current Board and Management.
In the midst of the shareholder dispute, Cresco Investments was appointed as an independent consultant to Datapulse Technology (“Datapulse”).
In preparation for the EGM, Cresco Investments assisted the management and current board to review past transactions and corporate relationships relating to Datapulse, its subsidiaries and related parties, including any historical corporate transactions by the proposed new directors.
In addition, Cresco Investments assisted the current board to strategize and engage constructively with shareholders (which includes the proposed business diversification for creation of longer-term shareholder value) and at the same time improve the communications and position with the regulators.
This resulted in the retention of the current board and also shareholder’s approval to move ahead with the business diversification at the EGM where the shareholders of Datapulse approve the resolutions:
(i) To approve and retain all four current board directors,
(ii) To approve business diversification into investments and consumer business,
(iii) To approve a special dividend of 1 cent per share following the sale of the Tai Seng property and,
(iv) Against the appointment of the proposed new board of directors.